There is news that brings us a little calm in the face of so much storm. Millions of people in the United States survive thanks to the payment of Social Security. And for them, this is much more than a help, it is what allows them to maintain peace in times when the economy seems like a stormy sea. With the arrival of this new year, the beneficiaries will receive an increase in their monthly checks!
But this change is not just about numbers, but a significant relief for those people who depend entirely on this income. Below we are going to tell you everything you need to know to start 2025 on the right foot. How will this increase be applied and what implications does it have for the beneficiaries? Let’s find out together.
Annual cost of living adjustment (COLA)
The so-called COLA is estimated to be 2.5% for 2025. We will explain it better, don’t worry. This adjustment is a small increase that is made to each payment that belongs to Social Security, which is intended to alleviate the effects of inflation. That is to say, each Social Security beneficiary will not notice in their pocket that prices continue to rise and continue to rise, so that the purchasing power of everyone can be protected thanks to this small increase.
Monthly payments will range between $715 and $4,995 depending on the situation of each beneficiary, of course. This change guarantees that the most vulnerable can cover their basic needs without having to make great efforts.
What does the COLA represent?
The COLA is designed, as we have said, so that users do not notice that the prices of basic goods and services (such as food, transportation or health expenses) continue to rise due to inflation. So, Social Security adds this small percentage to alleviate these effects.
What is the calendar for 2025?
2025 will bring with it a new schedule, and starting January 3, 2025, beneficiaries will begin to receive payments adjusted according to the new COLA percentage and, as we already know, the calendar divides the dates of delivery of benefits depending on the date of birth of the beneficiaries, which are the following:
- Born between the 1st and the 10th: Payment on January 8th.
- Born between the 11th and the 20th: Payment on January 15th.
- Born between the 21st and the 31st: Payment on January 22nd.
What will be the amounts for 2025?
In terms of retirement benefits, the amounts will be the following:
General average: $1,948 ($48 increase).
- Age 62: $2,778 ($68 increase).
- Age 67: $3,918 ($96 increase).
- Age 70: $4,995 ($122 increase).
For surviving beneficiaries, the benefits will be as follows:
- Overall average: $1,543 ($38 increase).
- Individual: $1,817 ($44 increase).
- With two children: $3,744 ($91 increase).
For disabled beneficiaries, the benefits will also be as follows:
- Overall average: $1,575 ($38 increase).
- Blind beneficiaries: $2,655 ($65 increase).
- Maximum payment: $3,918 ($96 increase).
Is there anything new for 2025?
Yes, Congress continues to debate various provisions that could put the future of Social Security in jeopardy, such as the Social Security Justice Act, a project that could eliminate the injustices suffered by former public sector workers (for which their benefits were considerably reduced despite having worked the necessary years and having made the relevant payments to the Administration (with their taxes). The measure as such has been approved with great bipartisan support, since in the end those who suffer are not to blame for anything, however, it has put the future of Social Security at the centre of the debate, since this change could add almost 200 billion dollars to the federal deficit in the coming years, which would cause the solvency of the Social Security trust funds to run out much sooner than expected (2033).
We will have to wait and see what measures are proposed to alleviate these effects, whether taxes will be raised or pensions will be lowered. 2025 has many tasks ahead and this has only just begun!